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660 points jonkuipers | 1 comments | | HN request time: 0.342s | source
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mdorazio ◴[] No.44504096[source]
Congratulations! But I’m disappointed with no mention of profit level in this post or another one linked. My last business I scaled to 500K ARR in less than two years, with $20K in total annual profit including the $0 my cofounder and I paid ourselves for many hours of work. I shut it down a year later and strongly regret the amount of work I put into it.

There’s an ARR metric trap in the founder community where people focus on revenue rather than on reaching a level of take-home income comparable to what they could make at a normal job. The former is a lot easier than the latter (especially in the US for people who can take home $250K fairly easily working in tech) - as the saying goes, you can make infinite revenue by selling dollars for 99 cents.

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1. scubakid ◴[] No.44504136[source]
Profit margin started out around 90% in the early years, but is looking more like 65% this year now that we're making a concerted effort to reinvest into growth, building a team, etc.